Seylan ups pre-tax profit in 1Q 2007
PROFITS: Seylan Bankâ€™s unaudited 1st quarter 2007 financials
indicated a pre-tax profit of Rs. 424.75 mn achieving a notable growth
of 13.72% over the previous yearâ€™s comparative period.
The Bankâ€™s net profit after tax was Rs. 205.82 mn, a reduction of
23.34% of the previous year due to higher corporate taxes.
The financials also saw Seylan Group which comprises subsidiaries
Seylan Merchant Bank Ltd. Ceylinco Seylan Developments Ltd and Seylan
Bank Asset Management Ltd recording a net profit after tax and minority
interest of Rs. 212.59 mn in the 1st quarter 2007.
The Bankâ€™s total income indicated a notable growth of 14.87% reaching
Rs. 2.15 Bn mainly on account of its net interest income, growing at
15.26% over same period of 2006.
This was achieved as a result of the Bank reaching a Rs. 100 Bn mark
on its deposits and in turn paving way for expansion in core business.
Further the Bank achieved this net profit after tax despite the
negative impact of the two tiered taxation of VAT on financial services
and corporate taxes had on its profits. Both VAT and corporate taxes
totalled Rs. 418.51 mn accounting for 67.03% of operating profit before
taxes including VAT on financial services.
It is also noteworthy to mention that the management focus on
recovery of dues through effective strategies that resulted in
substantial written backs and recovery of B&D Debts of Rs. 187.36 mn
boosted the Bankâ€™s profitability.
This was in spite of new regulations focusing on general provisioning
for which Rs. 75 mn was made in the 1st quarter 2007.